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DoN Janitorial and Sanitation Industry Meeting-29 June 2011

DoN Janitorial and Sanitation Industry Meeting-29 June 2011. Strategic Marketplace Management Team Fleet and Industrial Supply Center (FISC), San Diego. Conference Agenda. Sign-in Introductions Define Meeting Structure/Purpose FISCSD Brief

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DoN Janitorial and Sanitation Industry Meeting-29 June 2011

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  1. DoN Janitorial and SanitationIndustry Meeting-29 June 2011 Strategic Marketplace Management Team Fleet and Industrial Supply Center (FISC), San Diego

  2. Conference Agenda • Sign-in • Introductions • Define Meeting Structure/Purpose • FISCSD Brief • Strategic Sourcing--Current Acquisition Environment • Janitorial and Sanitation Equipment • Scope Defined • Spend and Navy Buying Trends • DoN Proposed Solution(s) • Discussion • Minimum Requirements • Expectations going forward • Q & A - Navy/Industry Exchange

  3. Today’s Goal… The purpose of today’s conference is to— • Provide background on the Navy’s approach for this requirement • Provide a status update of the procurement and process • Discuss the minimum requirement structure and industry ability to meet those requirements • Give industry the opportunity to provide feedback on the draft RFP • Discuss Next Steps…

  4. Strategic Sourcing—How We Got HereThe Current Acquisition Environment • Strategic Sourcing is a process for addressing the need for improving acquisitions through better analysis of requirements and cost drivers • Strategic Sourcing has been federally mandated by the Office of Management and Budget (This is not just a Navy issue) • Bottom Line… Strategic Sourcing Initiatives: • Streamline processes • Create efficiencies • Leverage spend • Reduce costs • Identify Small Business Opportunities

  5. Strategic Sourcing—How We Got HereThe Current Acquisition Environment (Cont’d) • Using Strategic Sourcing methodologies, the Navy determined that— • Cost savings and process improvement opportunities could be gained by: • Leveraging JANSAN spend volume • Offering competitively priced vehicles • Featuring best-price (particularly) on high-demand items • Streamlining Ordering Processes • There are “niches or niche markets” for Small Business • Navy/Industry partnering results in overall better solutions to meet customer requirements

  6. Scope & Spend DataFPDS-NG and DoD Emall FY07 - FY09

  7. Janitorial & Sanitation Equipment and Supplies(aka Cleaning Equipment & Supplies)Commodity Scope Defined JANITORIAL & SANITATION EQUIPMENT AND SUPPLIES COMMODITY STRUCTURE JANSAN Equipment and Supplies(aka Cleaning Equipment & Supplies) CATEGORY SUBCATEGORY Floor Polishers & Vacuum Cleaners Brooms, Brushes, Mops & Sponges Cleaning/Polishing Compounds & Prep Strictly JANSAN Supplies – No Services Included JANITORIAL & SANITATION (JANSAN) EQUIPMENT AND SUPPLIESCOMMODITY SCOPE JANSAN Supplies, (supplies only not services), are defined by United Nations Standard Products and Service Code (UNSPSC)(47) and as per Federal Supply Code (FSC) or Product Service Code (PSC) (79). The targeted 4-digit codes are 7910, 7920 and 7930. These three targeted FSC/PSC 4-digit codes include: 7910 - FLOOR POLISHERS & VACUUM CLEANERS7920 - BROOMS, BRUSHES, MOPS, AND SPONGES7930 - CLEANING/POLISHING COMPOUNDS & PREP 47 – CLEANING EQUIPMENT & SUPPLIES

  8. JANSAN FPDS-NG Summary ViewNavy Spend FY07-FY09 • FPDS-NG Data Observations: • “Floor Polishers & Vacuum Cleaners” (7910) were consistently the Navy’s top purchased JANSAN item(s) for 3-years • “Cleaning/Polishing Compounds & Prep” (7930) became the Navy’s 2nd most purchased JANSAN item(s) in FY08 & FY09 • Overall spend remained steady, w/an avg. of $3.5M over 3-years • Average spend per action (over 3 years) was $12.6K • FPDS-NG does not have a UNSPSC 47 category to pull additional “cleaning equipment & supplies” data. All spend is categorized by Federal Supply Codes/Product Service Codes (FSCs/PSCs)

  9. JANSAN DoD Emall Summary ViewNavy Spend FY07-FY09 • DoD Emall Data Observations: • There was a steady climb in JANSAN purchases over 3-years • Most JANSAN $s & actions represented by UNSPSC “47”, which covers an array of products (i.e. cleaners/detergents, trash bags, wastebaskets, towels, brushes, dusters, wipes, deodorizers, containers, dispensers, vacuums, etc.) • “Brooms, Brushes Mops and Sponges” (7920) is the 2nd biggest category of $s and actions in the Emall • Avg. spend per action (over 3 years) was $332-- Mode was $25.76 FY07; $107.47 FY08; Not attainable for FY09 data • FY07-Only 14 actions above $3K, FY08-Only 86 above $3K, FY09-186 above 3K. • DoD Emall allows for UNSPSC and FSC data pulls. Therefore, UNSPSC category “47” is included. Having the UNSPSC 47 category provided additional JANSAN spend data, that would have otherwise been lost due to incorrect or incomplete FSCs.

  10. JANSAN DoD Emall GPC & MILSTRIPNavy Spend FY07-FY09 DoD EMALL Payment Method ViewGovernment P-Card Spend to MILSTRIP Spend… DoD Emall Data Observations (Cont’d): The use of the P-Card for JANSAN purchases increased from 17% in FY07 to 37% in FY09. MILSTRIP remains primary payment method for JANSAN in Emall Top 5 Commands using MILSTRIP for JANSAN:FY08 – NAVSEA ($754K), “Other”($334K), NAVSUP ($256K), PAC-Fleet ($217K), NAVFAC ($178K)FY09 – NAVSUP ($522K), PAC-Fleet ($510K), “Other”($337K), NAVSEA ($261K), Misc. Marine Units ($199K)

  11. Total Navy JANSAN Spend FPDS-NG & DoD Emall Summary ViewFY07-FY09 • Combined FPDS-NG & EMALL Data Observations: • There was a steady climb in JANSAN purchases over 3-years • There was a 34% increase from FY07 to FY08 and a 16% increase from FY08 to FY09 • FY10 JANSAN Spend in FPDS-NG was $3.8M; in EMALL it’s $3.8M – Combined Spend (through 30 SEP 10) - $7.6M (This is a 5% increase ) • EMALL spend--99.2% was below $3K in FY07; 98.6% was below $3K in FY08; and 98.4% was below $3K in FY09. FPDSNG represented 14% of total JANSAN actions in FY07; 4% of total actions in FY08; and only 2% of actions in FY09

  12. High-Demand ItemsFY07 – FY09 Data

  13. DoD EMALLMost Purchased JANSAN Commodities for FY07-FY09 NAVY JANSAN TOP ITEMS PURCHASED (FY07- FY09) – DoD Emall TOP 25 ITEMS TOTAL $2.6M (39%) OF TOTAL $6.5M (OVER 3-YEARS) • EMALL Top Purchased Items Observations: • Not shown are the additional 75 items (we targeted top 100 in EMALL) • The top 100 items represent $3.9M (59%) of the total spend (over 3-years FY07-FY09) in EMALL • Of the 100 top purchased items, 37 or 37% were cleaners, detergents, polishers, deodorizers, etc. • The remaining 63 items or 63% were towels/wipes/cloths (big purchases), floor scrubbers, vacuums, liners, brooms, sweepers, dusters, sponges & scouring pads.

  14. FPDS-NGMost Purchased JANSAN Commodities for FY07-FY09 NAVY JANSAN TOP ITEMS PURCHASED (FY07-FY09) – FPDS-NG TOP FSC CATEGORY 7910 TOTAL $4.7M (45%) OF TOTAL $10.6M (OVER 3-YEARS) • FPDS-NG Top Purchased Items Observations: • Info/detail on items purchased not as granular as data in DoD EMALL Business Objects reports • FSC sub-category 7910 represented $4.7M (45%) of the total spend (over 3-years FY07-FY09) in FPDS-NG • FSC sub-category 7930 represented the next largest spend w/$3.1M (29%), with FSC subcategory 7920 close behind--$2.8M (26%).

  15. Small Business Opportunities

  16. FY07 – FY09Small Business played a large role in NAVY Categorized EMALL JANSAN SpendAll SB Categories compared to Large Business Small Business Actions = 9,989 Small Business Dollars = $2.8M • JAN/SAN Suppliers, (including small business entities), increased significantly between FY07-FY09 • Increased from 77 suppliers in FY07 to 415 suppliers in FY09 • SB categories increased to ~$2.8M dollars and 10K actions • The above displays ALL SB categories (actions & dollars) compared to Large Business • Actions: All SB = 68%, LB = 32% • Dollars: All SB = 65%, LB = 35%

  17. Findings & Recommendations

  18. According to FY07-FY09 DoD EMALL Data, an estimated 522 contracts were used to purchase JANSAN from approximately 415 suppliers JANSAN CONTRACTS/VEHICLES (FY 07- FY09) Total 3-Year EMALL Spend = $6.5M TOP 20 CONTRACTS = $4.9M TOP 20 SUPPLIERS = $5.1M • Of the Top 20 JANSAN Contracts, +60% of the spend was against DLA awarded vehicles. • Six diff. Navy contracts among Top 20 – Three reside in Navy Contracts Corridor. • The Old FISCSD Navy contract within Top 20 vehicles for JANSAN purchases • Ratio of contracts to suppliers – some were awarded multiple JANSAN contracts. • Small Business is well represented in Top 20 suppliers.

  19. Findings &Recommendations… JANSAN Acquisition Strategy Considerations are provided below: The need to buy JANSAN supplies (minus services) exists-- IDIQ Multiple Award Contract vehicle(s), comprised of both large and small businesses, with different niches depending on sub-commodity category-- Competition among awardees for Task Orders above $3K will generate additional savings-- Drive more spend through the Navy’s solution(s), eliminated non-competed buys through hundreds of other vehicles Based on historical data, identified “high demand” or “high profile” items, determine best pricing structure-- Develop Market Basket of the Top JANSAN items, (based on spend dollars and ordered quantities)-- Present vendors with the “price to beat” on the Market Basket of the Top JANSAN items-- Pricing should “always” be better than existing GSA schedules, BPAs, and other Open Market vehicles Ensure customers can place ONE order to obtain all required JANSAN items -- Allow flexibility to place smaller orders when needed, but still encourage better ordering behaviors and business practices, recommend a $50 minimum. Looking ahead for Spiral II once contracts are awarded -- Standardize List of Items – Too many choices (diff. UOMs, types, etc.) for one product)-- Provide Implementing Guidance & Policy with Standardized List

  20. Requirements & ExpectationsDiscussion and Q&A

  21. JANSAN Vendor Capability Requirements (AbilityOne, TAA Compliant)-- Must be an approved AbilityOne Distributor-- Must be able to ensure customers don’t buy competing items (i.e. ensure Ability One compliance)-- Must offer TAA compliant items(Technical Capability)-- Must provide an online ordering tool (e-Catalog) that provides availability information, allows for ordering (using P-Card)-- Must be able to provide electronic notification (via email) of orders received, order summary information and estimated delivery date-- Must be able to provide detailed monthly reports/metrics data (including but not limited to– Customer DODAAC/UIC info., Command Name, User Information, FSCs and UNSPSCs, product description, product quantity and UOM, product individual price and aggregate price based on ordered quantity, and total overall spend dollars etc.)(Delivery)-- Must be able to deliver products within 2-3 business days-- Must include all delivery costs in item pricing (no separately priced items for shipping)-- Must be able to provide packing slips with customer detailed info. for easy order-to-item receipt reconciliation(Customer Service)-- Must be able to provide a designated Point of Contact for the Navy’s JANSAN Commodity Manager-- Must be able to provide a customer service team with designated central email address and phone number(Material Safety Data Sheets) & (Green Products)-- Must provide MSDS’ with chemical compounds and other required items-- Must offer an array of “green or environmentally safe” products

  22. There are 106 total items (71 in the SB Basket and 35 in the LB Basket). Review of Market Baskets Spreadsheets for SB & LB

  23. Expectations & Discussion • Going Forward • Your comments will be considered in formalizing RFP • Anticipate receipt of formal RFP in the next couple of weeks • Any questions regarding the RFP, should be submitted via email • Email: daniel.mahan@navy.mil • Discussion/Q&A • Plan of Action & Next Steps

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